Excerpts from The Strategic Day Trader, by Robert Deel

I posted a few weeks ago that I had ordered "The Strategic Day Trader" by Robert Deel, from Amazon. From it, I have found some useful nuggets and found, in some part, the basis of Scott Farnham's method of trading. Published in 2000, much of it is dated; written before decimalization, for instance. However, it was well worth the $6 plus shipping that I paid. I have been re-reading my highlighted portions daily and thought these few from Chapter 4 - "A picture is worth a thousand words," might be interesting to some:
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"An analysis of price movement will show that stocks and markets move in distinctive, identifiable trends. These trends exist in multiple time frames of minutes, hours, weeks, months, even years. The existence of these trends is what high-probability, profitability traders and aggressive investors are seeking to identify."
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"Great traders identify trend and stay with it until it reverses. They do not abandon trend after it moves up 1/16 or 1/8 of a point. In day trading, for example, trends usually sustain themselves over various time intervals.... During this trend, there could be downward movement in one or two of the price bars, [he uses bar charts, not candlesticks] but the trend will usually keep moving upward or downward until the trend reverses. Because the trend is usually of a longer duration, you have the potential to capture substantial capital in one trade."
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"Never be fooled into thinking by taking more trades you will make more money. I prefer to take three to five high-probability trades over twenty scalping trades on every occasion. If you think about it, this is just common sense. When it comes to day trading, it has been my experience that logic and common sense are abandoned for emotional trading driven by fear and greed. "
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"If you look at an individual price bar for a given day, you see the high, low, and open for that day. Most people just see these bits of information and go no further. But as with the magnet, there is an invisible force that surrounds each daily price bar. That invisible force is intraday volatility. Volatility shapes the bar's high-low range, dictates the trend, and influences the other price bars. Each bar has to some degree an influence on the future price movement the next day. Because of this, you need to ascertain the intraday price movement of the previous day. In some cases you might want to observe the intraday movement of the previous five days. This will give you a feel for what traders are doing. For example, you may find intraday support and resistence levels that carry over into the next day."
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more on next post...